“That money was already spent in the economy through the tuition and living costs of the students.”
Some of these loans will have a lifespan of upwards of 30 years. A tad longer than the usual college stay. Again the impact on the economy is a negative. Those in their 20’s - 40’s tend to be the biggest spenders FYI.
“The bank or government, whoever holds the note, depends on those loans begin repaid. They need that repayment for their own business costs and to have money to invest in other businesses.”
Not really. Dubya hooked up the loan industry big time by instituting non-repudiation for educational loans. The banks who hold those notes can give them out without a care in the world precisely because the big government GOP idiots made it impossible for them to be disposed of in bankruptcy. This is harmful to the economy because if a student is directing most if not all of their disposable income to cover interest payments on a loan, consumables take a dive.
I have known many people with college loans who have payed them back over the ten year period. That is the way it should be done, unless of course, they can repay it faster.
They still managed to have disposable income, get married and have children they support.
Those holding onto those loans for 25-30 years are not making money and usually it’s because they went into large debt to obtain a degree that had little real world(private sector) value.
Teaching and the social services degrees are the worst because they cost a fortune and the entrance income for teachers and social workers is low. They have to get more and more “education” to up their income and so it is a vicious cycle. Meanwhile they put off for longer and longer their loan repayment.
Or, how about those who get useless degrees and then go into fields where their degree has no benefit to them or their employer.
Sorry, not buying the lib argument that it’s all Bush’s and the Republicans’ fault. That legislation was a reaction to the fact that the default rate for student loans was soaring. This problem existed long before Bush even took office.
You want to find the culprit? Look at liberal government policies that caused the costs of schooling to rise at a rate that far outstrips the rate of the raise in the cost of living and the rate of wage/income increases.
If you are going to go into debt for your education, you should have to pay it back. Look into the long term possibilities and know what you are getting into before you sign off for hundreds of thousands worth of debt.